Individual engineers don't make product decisions at big companies like Volkswagen. When I worked as an engineer at a big company, I couldn't even use a different text editor.
This even sounds somewhere between 2 to 3 levels above team lead. As a team [lead] in automotive you are mostly only responsible for a very small part of the system, and "diesel competence" sounds more strategic. Although titles are often manager, senior manager and then director of something, so it's hard to tell what leader is. But I guess it's far more an executive position with > 200 people below than an an "actual engineer".
His responsibility is probably above zero, but I'm having a hard time decisions of this kind aren't reviewed by many peers across company layers. Unless he lied about the purpose of his work and nobody could decipher his claims... still odd (reminds me of the Kerviel bank fraud)
If he lied about his work, and none else caught it, it brings up other questions about the integrity of VW vehicles. e.g. How valid are their safety testing results (could someone in the org have submitted vehicles for crash tests that weren't representative of the production config?)
Yes - maybe engineer doing air-bags is doing the same. And also brakes... so on. These engineers are not to be trusted: we need more management oversight.